Market Roundup
- US JOLTS Job Openings Apr +5.376m, (consensus 5.030m, previous +5.109m), record high
- US NFIB Business Index May 98.3, (previous 96.9)
- Mexico 12-Month Inflation May 2.88%, (consensus 2.92%, previous 3.06%), low inflation to linger to ’16
- ECB’s Makuch QE impact can be seen in higher inflation, indirectly in GDP & EUR/USD rate
- Germany’s Schaeuble after talks with Varoufakis says differences remain with Greece
- Eurogroup’s Dijsselbloem: We & Greece do not fully agree on what has to happen by end of month
- EU’s Dombrovskis important for Greece to say what measures they don’t like & what they are willing to do
- Japan govt panel says to raise sales tax in 2017 while preparing economic environment for move
- Russia C.Bank says will correct its forex purchases to minimise effect on rouble rate
- Czech central bank governor Singer says sees no need to think about any change in FX commitment
Economic Data Ahead
- (1845 ET/ 2245 GMT) NewZealand Elec Card Ret Sales mth May (previous -0.7%)
- (1845 ET/ 2245 GMT) NewZealand Elec Card Retail Sales YY May (previous 3.9%)
- (1950 ET/ 2350 GMT) Japan Corp Goods Price MM May (consensus 0.2%, previous 0.1%)
- (1950 ET/ 2350 GMT) Japan Corp Goods Price YY May (consensus -2.2%, previous -2.1%)
- (1950 ET/ 2350 GMT) Japan Machinery Orders MM Apr (consensus -2%, previous 2.9%)
- (1950 ET/ 2350 GMT) Japan Machinery Orders YY Apr (consensus -1.3%, previous 2.6%)
- –:– CN M2 Money Supply YY May (consensus 10.5%, previous 10.1%)
- –:– CN New Yuan Loans May (consensus 900.0b, previous 707.9b)
- (2030 ET/ 0030 GMT) Australia Consumer Sentiment Jun (previous 6.4%)
Key Events Ahead
- –:– Japan Bank of Japan board member Takehiro Sato speaks at Kofu.
FX RecapEUR/USD: After bottoming out at 1.1210 during the European session, EUR/USD spot has managed to stage a comeback to the current area of 1.1280. The pair still remains in the negative territory, surrendering part of yesterday’s significant gains. There are no scheduled releases in EU and the US on Wed, leaving the pair to the mercy of Greek headlines. The pair is currently trading at 1.1286 down 0.04% on the day. Supports are seen at 1.1214 (low Jun 9), 1.1179 (low Jun 4) and then 1.1084 (low Jun 8). Resistances allign at 1.1346 (high Jun 9) followed by 1.1383 (high May 13) and then 1.1400 (psychological level). Option expiries for Wednesday 10 June: 1.1100 (448M), 1.1115-25 (717M), 1.1150 (313M), 1.1200 (560M), 1.1265 (458M)
AUD/USD: The Australian dollar briefly rose above the 0.7700 level at the beginning of the American session, but fails to hold above. The pair has settled at mid-range against the greenback, and has been in a phase of consolidation over the last hours. At time of writing, the pair is trading at 0.7677, stil 0.26% below its opening price. Immediate resistances are seen at 0.7729 (Jun 5 high), 0.7787 (100-day SMA) and 0.7800 (psychological level). While on the downside supports are seen at 0.7645 (daily low), 0.7598 (Jun 5 & 1 lows) and 0.7570 (Apr 15 low). Option expiries for Wednesday 10 June: 0.7625 (200M), 0.7745 (200M), 0.7850 (668M)
USD/JPY is falling for the second day in a row. After declining 30 pips from the 124.45 level, USD/JPY found new buying interest at 124.10 that sent it back to 124.45. The US dollar is trading in the recovery mode against the Japanese Yen and USD/JPY currently is just 0.06% down on the day, having posted a daily high at 124.75 and low at 123.86. Above 124.45, resistances are at 124.60 and 124.80. To the downside, supports are at 124.10, 124.80 and 124.60. Option expiries for Wednesday 10 June: 123.00 (725M), 123.25 (440M), 124.00 (880M), 124.25 (280M), 125.00 (380M), 125.25 (500M)
GBP/USD: Despite any clear catalysts, GBP/USD rose sharply from a daily low of 1.5256 to a 5-day peak of 1.5388. The pair staged a nice comeback during the New York session and turned positive for the day. During the last few hours in the American session, the pair has been consolidating in a slim range near highs and it was last up 0.20% at 1.5376. Resistances are at 1.5430, 1.5468 and then 1.5507, while on the flipside supports are seen at 1.5285, 1.5246 and then 1.5208. Option expiries for Wednesday 10 June: 1.5050 (200M), 1.5075 (200M), 1.5445-50 (355M)
GBP/JPY traded lower during the European morning Tuesday, falling below the lower line of a possible rising wedge formation. The Pound rallied 150 pips from daily lows at 189.50 to trade back at 191.00 after Philip Hammond affirmed that “as long as there is a Conservative government,” the UK “will not, and never will be, part of the single currency.” Currently, GBP/JPY is trading at 190.96, still down 0.06% on the day, having posted a daily high at 191.28 and low at 189.53. Beyond 191.00, resistances are at 191.25 and 191.50. To the downside, supports are now at 190.70, 190.45 and 190.00.
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